The Property contains a tungsten skarn deposit; skarns are contact metasomatic deposits, exploited for tungsten, with accessory molybdenum, copper, tin and zinc.

The tungsten mineralisation of the Sangdong deposit is contained in several tabular, beddingconformable skarns in the Myobong Shale; these skarns have been interpreted as comprising carbonate-bearing horizons that were altered and mineralised by fluids ascending from the underlying Sangdong Granite.

From uppermost to lowermost, these horizons are termed the Hangingwall, Main, and Footwall horizons. Calc-silicate layers from 0.50 – 1.0m in thickness have developed on the upper and lower contacts of the Main and Footwall horizons.

The Hangingwall horizon is located near the upper contact of the Myobong shale and varies in thickness from approximately 5.0 to 30.0m because of the irregular boundary of the shale with the overlying Pungchon Limestone. This zone has a strike length of about 600m and a down-dip extent of about 800m. Above the most highly-altered portion of the Main horizon, the Hangingwall horizon is not tabular, but extends steeply and irregularly into the overlying limestone. The Hangingwall horizon contains diopside, garnet, fluorite, zoisite, quartz, hornblende, wollastonite and up to 50% calcite and although there is some zonal variation in mineral assemblages (diopside-, hornblende- and quartzrich zones) the zonation is not as well- developed as in the underlying Main h ........

Based on the latest understanding of the orebody geometry and mining areas, and evaluation of the resources, including in-situ thickness variations, it was decided to apply two proposed mining methods:

- Mechanized Inclined Panel mining (MIP) – areas where the thickness less than 3 metres.
- Cut-and-Fill (CAF) – for areas where the thickness is greater than 3 metres.

The envisaged MIP method involves drifting on apparent dip, so as not to exceed a gradient of 15%, and so allow trackless equipment. The stope development is planned to be symmetrical, with panels being extended both up and down from access galleries.

This method is very flexible, in allowing working upwards or downwards, and conversion to cut-and-fill.

The sequencing of MIP stoping operations will be:
1. Development of level strike drives, the base transport gallery.
2. Ore Drifts will be developed oblique to strike drive, at a maximum gradient of 15%. These drifts will be 3m x 3m, and will spaced 12m apart, to form one side of each primary panel. These drives will be extended to the next upper or lower level, and so will have a strike length of approximately 175m.
3. The ore drives will be slashed out an additional width of 3m, to leave the primary panels 6m wide. For ore regions less than 3m in thickness, the slash height can be limited down to 1.5 m minimum.
4. When the primary panels are complete, fill barricades will be required at the bas ........

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